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Buffet pledges aproximately $30 billlion to the B&MG Foundation

Warren Buffet, considered to be the most respected Wall Street investor of the century, announced that he will be donating $30 billion worth of common stock from his company to the Bill and Melinda Gates Foundation. Buffet is the Chairman and CEO of Berkshire Hathaway, a company focused on investments in a diverse number of industries.

According to Buffet, he will be donating roughly $44 billion in total to philanthropic causes which is about 85% of his total net fortune. Buffet told reporters that his decisions to give such a significant amount to the Bill and Melinda Gates Foundation is due to Bill Gates’ decision recently to step back from his responsibilities at Microsoft to focus more on the foundation. Many analysts and people in general view the Bill and Melinda Gates Foundation to be the world's most respectable charitable foundation due to Bill Gates' involvement and how critical he is about where money is spent and who it is given to.

Buffet will award 5% of the total gift to the Gates Foundation every year until the balance is complete. The remaining $14 billion will be donated to other foundations and charities as well as Buffet's children. On many occasions, Buffet has stated that he would only leave a few "hundred thousand" per child.

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I Am Impressed
By qdemn7 on 6/26/2006 10:07:52 AM , Rating: 3
I thought Buffet would never give any of his money away. I'm pleased to be wrong. This is really going to give a terrific boost to the Gates Foundation, and will rally give the Gates a tremendous amount of political clout.

Of course those who think Bill Gates is the Anti-Christ, will just think this is all a big conspriracy.

Now lets see if Steve Jobs can step up to the plate. somehow I don't plan on holding my breath.




RE: I Am Impressed
By rushfan2006 on 6/26/2006 10:15:58 AM , Rating: 2
I second your thoughts. The best way for me to sum up my view on this -- it makes me "happy". I, myself give to charities every year, my giving is paltry of course next to rich people but I try my best to help out (much less the ultra-super rich like Buffet and Gates).

Unfortunately, as sure as I'm typing this right now -- I can guarantee that by the end of the day this thread will have some kind of post spinning this in a negative light or some kind of angle or conspiracy that Bill Gates is working here.

Its a shame how tainted some people are, its no way to live.



RE: I Am Impressed
By masher2 (blog) on 6/26/2006 10:16:55 AM , Rating: 3
> "Now lets see if Steve Jobs can step up to the plate"

Jobs hell, what about Larry Ellison? He's got far more money than Jobs...and he recently reneged on a $100M pledge he made to Harvard.


RE: I Am Impressed
By Samus on 6/26/2006 12:40:20 PM , Rating: 2
jobs has no money ;)


well, 1.5B net worth...so figuratively speaking, not a lot of money.


RE: I Am Impressed
By Tanclearas on 6/26/06, Rating: 0
RE: I Am Impressed
By masher2 (blog) on 6/26/2006 10:25:51 AM , Rating: 2
> "a significant chunk of his "charitable donations" are more like refunds to [the] school systems..."

Congratulations on the most asinine comment of the week. Even had Gates attended a public school, this would be far off base. Considering he attended a private one (and thereby *paid* for his education), its even more ludicrous.

> "I would hardly call someone a hero if they punched me in the face, then handed me a band-aid. "

This one was runner-up for the award...


RE: I Am Impressed
By masteraleph on 6/26/2006 10:47:09 AM , Rating: 3
I'm pretty sure that the implication of Tanclearas' comment is that the school systems all bought Windows/Office/etc, therefore giving him the money that he's donating. Which of course ignores the fact that MS sells their software to school districts which wish to subscribe for far less than they charge commercial buyers or even individual educational buyers, and the fact that no one complains when schools buy others supplies that those companies are screwing over the schools.


RE: I Am Impressed
By Tanclearas on 6/26/06, Rating: 0
RE: I Am Impressed
By bnme on 6/26/2006 12:41:25 PM , Rating: 3
quote:
Had there been more companies competing (and profitting) in the software industry, there would be more philanthropists out there.


That's all a big IF . It is as likely that those other so called competing companies wouldn't profit at all, and the school's still would get charged as much if not more, than what Microsoft charges. Their owners might also not be as charitable, and the schools could we worse off.

Bill Gates is the rockstar of modern capitalism. He built a very successful business, which made him rich. Yes, there were some questionable practices (companies are not perfect, and neither are people, but there are some that are worse than others, and Microsoft is far from an Enron, so far).

Bill Gates might not be a saint, but he is a role model for a lot of people, maybe not you. The world's richest man, the world's biggest philanthropist, and the guy who played an important role at bringing PC's to people's homes.

Suckers? No... Maybe these people have a different definition of success than you.

So quit acting like you know what would have happen if Microsoft did not exist, cause frankly, you don't.

Only God would know that would have happened if Microsoft did not exist.


RE: I Am Impressed
By Tanclearas on 6/26/06, Rating: 0
RE: I Am Impressed
By TomZ on 6/26/2006 2:27:19 PM , Rating: 2
quote:
It is in the best interest of the wealthy to be philanthropic. Tax write-offs are incredible incentives.

Think about what you said. Bill Gates and Warren Buffet are giving away tens of billions of dollars. Do you think it would save them more money to give it away, or to keep it and pay taxes on it?

In case you can't reach the right conclusion, the answer is that it makes no sense for people to give away large amounts of money like this for tax purposes. That strategy only makes sense for us "average folks" to get some small tax breaks for making charitable contributions.


RE: I Am Impressed
By bnme on 6/26/2006 3:59:04 PM , Rating: 4
To add on to TomZ's reply, Microsoft is not just Bill Gates. Microsoft is a corporation, with many thousands of shareholders (part-owners), as well as 61,000 employees (and many of them have families to take care of also). Microsoft is made to maximize profit, for its owners and its employees. More times than not, doing so within the law is beneficial to Microsoft.

The money he has right now is self-made, from the businesses he started and the investments he made. Through his hard work and by using his talents, cleverness, and great business skills, he made Microsoft into company it is today, and along the way he earned the title of richest man in the world (in terms of money).

Seriously. Tax breaks for giving to charity? Giving away 90% of your earnings for a tax break? On what? The remaining 10%? Doesn't make much sense (since heck, the tax rate is currently not 90%). And seriously... whether he had 40 billion or 1 billion probably wouldn't mean squat for his standard of living today, and only affect how much influence he has on other things. Those other things he chose? World health and education:

Recently announced donations

• Tuberculosis, May 2006: $104 million into the nonprofit Global Alliance for TB Drug Development to expand and speed the pipeline for new drugs to treat tuberculosis, a lung infection that remains the world's second-biggest infectious-disease killer, after AIDS. The foundation has targeted TB since standard treatments are 40 years old and take six months to cure the disease. In January, the foundation said it would triple its funding commitments for tuberculosis research to $900 million over the next decade.

• Malaria, October 2005: Pledged $258.3 million for a multipronged attack on what Mr. Gates called the "forgotten epidemic" of malaria, a major killer of African children. The money would fund research and development on a promising vaccine, new drugs and improved tools for mosquito control.

• AIDS, February 2005: Promised as much as $360 million over five years to support initiatives to speed up the search for an AIDS vaccine.

• Polio, January 2005: $10 million in new grants to the World Health Organization and Unicef to fund development and distribution of an improved polio vaccine during 2005. The eventual goal of the effort was to stop the spread of polio world-wide.

• Childhood vaccinations, January 2005: Pledged a $750 million grant over 10 years to support the Global Alliance for Vaccines and Immunization, a Geneva-based partnership funding childhood vaccination in poor countries. The new money came atop a prior $750 million grant in 1999 and two smaller grants, bringing the total Gates commitment to GAVI to a little more than $1.5 billion.

• AIDS, TB, Malaria, July 2004: Announced a $50 million grant to the Global Fund to Fight AIDS, Tuberculosis and Malaria.

• Tuberculosis, February 2004: $82.9 million grant to the Aeras Global TB Vaccine Foundation for the development of newer and better vaccines against tuberculosis.

• Malaria, September 2003: $168 million in grants to projects devoted to the treatment and prevention of malaria in Africa.

• Education, June 2003: $22 million to the NewSchools Venture Fund, a San Francisco nonprofit organization that promoted charter schools and other education initiatives.

• Global Health, January 2003: Foundation said it would give $200 million to establish the "Grand Challenges in Global Health initiative," to be administered by the Foundation for the National Institutes of Health, a nonprofit organization related to the NIH. The initiative would bring together top scientists to tackle global health problems.

• Education, October 2000: $210 million to fund scholarships for graduate students, particularly those from developing countries, at the University of Cambridge in England.

• Education, September 1999: Announced a $1 billion college scholarship fund for minority students, to be funded by the foundation with annual grants of $50 million.


RE: I Am Impressed
By TomZ on 6/26/2006 1:35:49 PM , Rating: 2
Tanclearas, I disagree with nearly every word you wrote. Yes, Microsoft did break the law along the way, but that is not what has made Microsoft successful. You are looking at 1% of Microsoft's actions (at most) and are ignoring the
99%.

Microsoft has the majority of market share in some areas because people liked their products and chose to buy them . I never saw anybody at the Microsoft section of the computer store holding a gun to people's heads ordering them to make a purchase.

With most of their products, Microsoft does not have a majority of market share, and they compete just like all other companies. They are no different in that respect. In many instances, Microsoft is even the underdog. Their success is not a given in anything - they have had many product failures in the past - again, just like any other company.

Anyway, that's enough - it is clear by the tone in your message that you will never be convinced of anything. But please at least take away from this the fact that many people are satisfied with some of Microsoft's products, and never was anyone forced to buy anything from Microsoft.


RE: I Am Impressed
By Tanclearas on 6/26/2006 2:24:17 PM , Rating: 2
Please tell me you're kidding? Manufacturers were essentially forced to "choose" Microsoft. That has been proven. "People" went to the store and had the "choice" of Microsoft.


RE: I Am Impressed
By TomZ on 6/26/2006 2:31:18 PM , Rating: 2
quote:
Please tell me you're kidding? Manufacturers were essentially forced to "choose" Microsoft. That has been proven. "People" went to the store and had the "choice" of Microsoft.

Wrong - alternatives have always been available, though not popular. Some I can quickly think of are CP/M and DR-DOS instead of MS-DOS; and OS/2, Mac, and Linux instead of Windows.

Your perception of lack of choice only exists in your mind because you are envisioning being able to run certain applications that only run on Windows. But that does not mean that you don't have choice.


RE: I Am Impressed
By masher2 (blog) on 6/26/2006 1:57:31 PM , Rating: 1
> "Microsoft, and therefore Gates, made, and continue to make, incredible amounts of money from the school system."

Incredible amounts? No, of course not...not from the massively discounted prices charges to schools. The vast majority of Microsoft revenue derives from corporate sales.

Apple in its heyday made the bulk of its revenue from schools, on a percentage basis, far more than did Microsoft. And they didn't give nearly as steep an educational discount either. So why aren't you whining about Jobs?

In any case, the price charged is a moot point. The schools bought what they wanted-- the best product at the best price, in their opinion. No one forced them to buy Windows or Office. They chose to do so. Freedom is a wonderful thing, regardless of what you might think of the concept.

> "Now, Gates gets to control where the money gets spent, rather than the school systems having the money to spend where it's most needed"

Lol, have you stepped in a school in the past fifty years? There isn't a public school in the nation that has ever "spent money where its most needed". I'm far more comfortable with the Gates Foundation directing those funds, than a bunch of self-serving bureaucratic types.

> "people that look at Gates like some sort of saint were the sucker the minute they were born"

How much money have YOU given to charity this year? I strongly suspect its far less than even 1% of your total income. Which makes you not only an ill-informed socialist twerp, but a hypocrite as well.



RE: I Am Impressed
By Tanclearas on 6/26/2006 3:14:28 PM , Rating: 2
I work in a school and see how much of our budget goes to Microsoft. It is no small amount, despite the "massive discounts". This is money that has been made available for some type of technology by those "self-serving bureaucrats", but a significant chunk is going to Microsoft.

Why don't we "choose" something else? Any attempt to change to something else results in complaints of interoperability with other schools and businesses, or loss of productivity. In most cases, the interoperability is very minor, and the loss of productivity is just that someone is too lazy to learn something new. This isn't just within the organization, but from people in other businesses or organizations that we don't have any control over.

Why don't I complain about others like I do Gates? It just amazes me that every time I hear about how much Gates is "giving away", people start with the "He's such a great guy" nonsense.

We don't all donate in the same way. I do donate to organizations for which I receive tax receipts, but that is definitely less than 1% of my income. I also tend to provide large gratuities to people who work in low income jobs. I do that every single day, and I do it because I know how degrading and thankless some of those jobs can be, how difficult, physically and emotionally, the jobs can be, and how difficult it can be to just pay the bills. And I assure you, I don't get any taxable benefit for that.


RE: I Am Impressed
By masher2 (blog) on 6/26/2006 3:20:45 PM , Rating: 2
> "I work in a school..."

Well that certainly explains the socialistic bent.

> "Any attempt to change to something else results in complaints of interoperability...or loss of productivity. In most cases, the interoperability is very minor, and the loss of productivity is just that someone is too lazy to learn something new"

Sounds like your problem is your lazy-ass teachers and administrators then, not Microsoft.

> "I do donate to organizations for which I receive tax receipts..."

In other words, you only donate when you have a financial reason to do so? How crass.

> "I also tend to provide large gratuities to people who work in low income jobs."

Lol, this is the best comment yet. A big tip at lunch is somehow comparable to Bill Gates giving away 90% of the money he's made his entire life.....Oh, and devoting countless years of unpaid administrative labor directly to his foundation?

While you sit here jawing about what a great guy you are, Bill Gates is out there HELPING PEOPLE. Right now.

Maybe that's why people he's a great guy, and you're just a jealousy-ridden hypocrite?


RE: I Am Impressed
By Tanclearas on 6/26/2006 4:53:48 PM , Rating: 2
quote:
Well that certainly explains the socialistic bent.

I take no issue with someone making money. I just take issue with people making Gates out to be some sort of modern-day saint when his business practices were morally questionable. I guess I just find it a little disturbing that forgiveness can be bought.

quote:
Sounds like your problem is your lazy-ass teachers and administrators then, not Microsoft.

It's nice that you left out the part of my message that the problem was not just within the school, but from those people in other organizations with the "lazy-ass" employees. In fact, most teachers and school administrators are willing to make the effort, but quickly tire of the lack of cooperation from outside.

quote:
In other words, you only donate when you have a financial reason to do so? How crass.

Once again, effective quoting to ignore the fact that most of the money I choose to give away, I do so with no benefit to myself.

It's also nice that you think the only people that you interact with over the course of the day are people that are serving you food. Try taking a look around once in a while and you might just see people close to you that need help.

If the only way I can be as great a guy as Bill Gates is to give away 90% of my "fortune" (LOL), then I guess I'm doomed to be a selfish prick my whole life.


RE: I Am Impressed
By masher2 (blog) on 6/26/2006 5:13:37 PM , Rating: 2
> "I take no issue with someone making money"

Better rephrase all your posts then, because that's the clear message you're sending.

> "I guess I just find it a little disturbing that forgiveness can be bought..."

I don't really consider giving away a free browser to be a morally sin...regardless of what your own opinion may be.

> "the problem was not just within the school, but from those people in other organizations with the "lazy-ass" employees..."

Other organizations...besides Microsoft, you mean? You're digging your hole deeper here; you might want to just let this one lie.

> "most of the money I choose to give away, I do so with no benefit to myself."

"Most" of that $100/year, eh? Did the Pope confirm your sanctification yet?

> "you think the only people that you interact with over the course of the day are people that are serving you food"

Who else do you provide "gratituties" to? Are you tipping the Blockbuster clerk and the UPS driver also?

> "If the only way I can be as great a guy as Bill Gates is to give away 90% of my "fortune" (LOL), then I guess I'm doomed to be a selfish prick my whole life..."

Or you could actually DO something for people, rather than complain about people that actually are making a difference. Big tips to pole dancers doesn't count.




RE: I Am Impressed
By TomZ on 6/26/2006 5:33:31 PM , Rating: 2
quote:
I take no issue with someone making money. I just take issue with people making Gates out to be some sort of modern-day saint when his business practices were morally questionable. I guess I just find it a little disturbing that forgiveness can be bought.

First, nobody said Gates is a saint, and he has done nothing that needs any forgiveness. Gates is not a religious leader like the Pope, so it makes no sense to judge him using such standards.

Gates is a good businessman, who is now turning his resources on solving some of the world's most difficult problems (see the list above provided by another poster). What I and others are applauding is Gates' selfless efforts to help solve those problems, even though there is zero benefit to him personally, besides the feeling of having made a difference in the world.

Good for him, I say, if he has the resources, intelligence, energy, contacts, etc. to make a difference. I wish I was in the same position.


RE: I Am Impressed
By masher2 (blog) on 6/26/2006 5:56:09 PM , Rating: 3
> "Gates is a good businessman, who is now turning his resources on solving some of the world's most difficult problems "

And let's not forget that his billions in contributions will probably accomplish five times what equivalent governmental spending would have done. The hallmark of his foundation is efficiency, tight controls over spending, and value received for funds allocated.


RE: I Am Impressed
By TomZ on 6/26/2006 6:12:23 PM , Rating: 2
quote:
And let's not forget that his billions in contributions will probably accomplish five times what equivalent governmental spending would have done. The hallmark of his foundation is efficiency, tight controls over spending, and value received for funds allocated.

I agree, and that is what is significant to having Bill Gates involved. I am sure this is also why Warren Buffet feels the money is in good hands in that foundation. I predict that other wealthy donors will follow suit and donate to the foundation for the same reasons.


RE: I Am Impressed
By CSMR on 6/27/2006 1:50:06 AM , Rating: 2
The Pope needs forgiveness according to Catholicism. (So do all saints.)


RE: I Am Impressed
By TomZ on 6/26/2006 3:24:15 PM , Rating: 2
quote:
I work in a school and see how much of our budget goes to Microsoft. It is no small amount, despite the "massive discounts". ... Why don't we "choose" something else? Any attempt to change to something else results in complaints of interoperability with other schools and businesses, or loss of productivity.

I think you need to read your own words, since they contradict your own argument. By your own words, you are saying that your school is chooing (not being forced to) spend money on Microsoft software. Then you even go so far as to outline the benefits and value proposition with Microsoft, even to point out the productivity.

I simply cannot believe that you don't understand the value of the software and why people purchase it. I think you must be in complete denial. I can only assume you are one of these people who believe that "software should be free" as some sort of philosophy or religion. Even if you believe this, you need to also understand that some companies invest in creating software in order to make a profit, and these same companies then sell the software at the market value.


RE: I Am Impressed
By masher2 (blog) on 6/26/2006 3:28:49 PM , Rating: 2
> "I can only assume you are one of these people who believe that "software should be free" as some sort of philosophy or religion. "

Those people are truly scary.

Most of them, interestingly enough, work for schools or universities.


RE: I Am Impressed
By CSMR on 6/27/2006 1:48:04 AM , Rating: 2
No I think most of them are young people


RE: I Am Impressed
By Phynaz on 6/26/2006 3:53:02 PM , Rating: 2
quote:
Any attempt to change to something else results in complaints of interoperability with other schools and businesses, or loss of productivity.


This is your problem, it has nothing to do with Microsoft.

quote:
We don't all donate in the same way. I do donate to organizations for which I receive tax receipts, but that is definitely less than 1% of my income.


Wow, that $100 a year you give is so generous.


RE: I Am Impressed
By clementlim on 6/26/2006 2:25:59 PM , Rating: 2
Tanclearas, if you think Bill Gates is trying to repent and "undo" his sins, well, at least he is going the right direction. You on the other hand, have no right to judge a man, much less give out comments without proofs. A man giving a dime to the needy may not be a saint, but he is still doing a reputable deed.


RE: I Am Impressed
By KCjoker on 6/26/2006 4:49:33 PM , Rating: 2
I'm impressed too but I wish they'd also focus more on cancer it effects millions around the world as well.


RE: I Am Impressed
By ramj70 on 6/26/2006 6:46:56 PM , Rating: 2
I wouldn't be too impressed with this. This is what the extremely wealthy do, they put their money in foudnations so they don't have to pay taxes. Now Mr. Buffet here is in avowed supporter of the estate tax. Now when Mr. Buffet dies 55% of his money would go to the government. However by placing most of his money in foundations and trusts for his children he pays no taxes. Of course he wants others to pay the estate tax, those that cannot afford to set up trusts and foundations like Bill Gates, but he is hypocritical in not paying the taxes. From the New York Sun

Mr. Buffett could have let the government take its share of his estate after he dies. But just as Mr. Buffett has accumulated his vast wealth without paying much personal income tax, he has found a way to avoid the tax man in this maneuver as well, even writing in his letter to Bill and Melinda Gates that a condition of the gift is that the foundation "must continue to satisfy legal requirements qualifying my gifts as charitable and not subject to gift or other taxes."

On the estate tax, watch what Mr. Buffett does, not what he says. The Gates Foundation isn't the only recipient of his largesse--three foundations headed by Mr. Buffett's three children, Susan, Howard, and Peter, will get hundreds of millions of dollars. Tax documents show that in 2004, Peter Buffett and his wife Jennifer each took a $40,000 a year salary for what they reported was 30 hours a week each of work on the foundation.

No Mr. Buffet isn't doing this for purely altruistic reasons, but to keep from paying taxes that he expects others to pay. I am not impressed or fooled by the hypocritical wealthy.


RE: I Am Impressed
By TomZ on 6/26/2006 7:42:43 PM , Rating: 2
Sorry, but avoiding unnecessary tax is a good thing. Only a fool would pay more tax than they have to. The government has no more right to Buffet's wealth than you or I do. What did risks did the government take along with Buffet all through the years? None - the government is just a silent greedy partner investing very little and ready to take lots. Buffet earned his wealth and it is his right to decide how it gets used.

Buffet is smart to give his wealth to foundations like the Gates Foundation since they will put it to much better use than the government. It seems that the Gates Foundation has a high standard for effectiveness and accountability, two attributes completely lacking in government spending.


RE: I Am Impressed
By ramj70 on 6/26/2006 8:38:40 PM , Rating: 2
I never said avoiding taxes was not smart. What I did say is that people like Buffet are hypocritical because they believe the estate tax is a good thing even though they don't pay it. Its always the middle class and upper middle class that pay, not the wealthy. The wealthy have the money to find loopholes, and that is fine, but they are hypocritical when they expect others to have to pay the unfair estate tax.


RE: I Am Impressed
By TomZ on 6/26/2006 8:53:38 PM , Rating: 2
I don't agree. What some people are against, and why they support the estate tax, is a great accumulation of wealth and power passed on for many generations. If Buffet (and also Gates) set as a goal to distribute their fortunes prior to their deaths rather than passing it to their children, then they have remained true to their principle. Buffet's decision achieves his goal without the waste/inefficency inherent in government spending.


RE: I Am Impressed
By ramj70 on 6/26/2006 9:12:24 PM , Rating: 2
Unfortunately the estate & gift taxes doesn't work though since the wealthy find ways around it. Buffet knows perfectly well it doesn't work or prevent wealth from being handed down from generation to generation, so he and others like him are hypocrites for wanting to keep it in place because they know they will never have to pay the estate tax. Besides people's money should be theirs to do as they please without someone telling them it should be redistributed. After all they did earn it and its theirs. Just as Mr. Buffet is free to do with his money as he pleases so should others in giving it to their children if they so wish.


RE: I Am Impressed
By TomZ on 6/26/2006 9:27:07 PM , Rating: 2
I don't agree that he is a hypocrite, because Buffet has made it pretty clear that he plans to leave virtually none of his wealth to his children. Of the $40-50B of his wealth (so far), he is planning to leave a only few hundred thousand dollars to each of his children. So while he may be avoiding paying the estate tax, he is still avoiding passing his wealth and power to his children.


RE: I Am Impressed
By ramj70 on 6/26/2006 9:44:19 PM , Rating: 2
When you expect others to do something but you do not, then that is hypocrisy. Warren Buffet is a hyprocrite because he expects others to pay but he will not. That is hypocrisy, plain and simple. His hypocricy has nothing to do with what he leaves his children, or wealth and power being left to the family. His hypocricy is that he thinks others should pay it, but he should not. Now if you don't think that's hypocricy, fine. All I know is its the middle class that is hurt. Like when my grandfather left me 20 acres of his land, not a lot of wealth and power mind you, but I had to sell it off to pay the taxes. Or that every year my small bonuses from my job have almost 45% taken out in taxes because its considered a gift. Now Mr. Buffet and his wealthy friends think that middle class people like myself should pay those taxes, while he and his wealthy friends does not. Like I said, hypocrisy.


RE: I Am Impressed
By masher2 (blog) on 6/26/2006 10:33:28 PM , Rating: 2
> "Buffet is a hyprocrite because he expects others to pay but he will not."

The estate tax is paid on your "estate". The money Buffet gives away before he dies isn't his estate. Why should an estate tax be paid upon it?

Claiming you don't "have the means" to do what he's doing is sheer nonsense. Write a check to the Gates Foundation yourself. You won't have to pay a penny of estate tax.

Of course, I'm pretty sure you'll never donate a thin dime to them...or any other such charitable foundation. Such hypocrisy.


RE: I Am Impressed
By ramj70 on 6/27/2006 6:55:12 AM , Rating: 2
"Of course, I'm pretty sure you'll never donate a thin dime to them...or any other such charitable foundation. Such hypocrisy."

How exactly am I a hypocrite? I never said people should or should not donate to charities, so your accusations are nonsense. Also you do not know what I donate because its none of your business, I don't have to brag to others to feel good about myself.

And sorry, but I don't have the means like Buffet does to have a team of accountants to set up off shore accounts and billion dollar trusts. Its not as simple as "writing a check to the Gates Foundation". Its about allowing middle class people to do with their money as they want, money they earn and is rightfully theirs. Something you apparently have no concept of. Maybe one day when you grow up and get a real job and have a family you will understand that.


RE: I Am Impressed
By masher2 (blog) on 6/27/2006 8:57:05 AM , Rating: 2
> "How exactly am I a hypocrite?"

In several different ways, actually. I'll explain...this time using smaller words. First of all, you claim that "the rich" have a means to evade the estate tax that you do not...and that Buffet is using that means here. False. You could donate to the Gates Foundation yourself. You don't need "a team of accountants" to do this. And it allows you to avoid EXACTLY as much estate tax as Buffet is doing.

With me so far? I can't really dumb down the explanation any further.

Secondly, you complain about Buffet leaving money for his children. Yet, he intends to leave only a few hundred thousand to each. You yourself claim to "having to sell" your grandfather's land for estate taxes. Given the estate tax threshold is two million dollars, that means you wound up with more than that free and clear. In other words, you're getting far more of a legacy than any of Buffet's children.

Put simply, you received the majority of your relative's estate. Buffet's relatives are going to receive less than 0.01% of his estate. So between you and him, you, sir, are by far the guiltier party.



RE: I Am Impressed
By bnme on 6/27/2006 10:53:13 AM , Rating: 2
Apparently you never read about Buffett nor his company, Berkshire Hathaway before.

Both Buffett and Berkshire Hathaway pay a higher share of their earnings (percentage) in taxes than most large corporations. Read the frackin annual statements first before you jibber gabber nonsense.

His support for the estate tax is quite simply rooted in the fact that he dislikes dynastic wealth. Giving money back to society instead of his children totally supports his view on this matter. The estate tax dissuades people from passing on their wealth to their children, which supports his views...

Hypocrite? You might have a harsh view of very wealthy people, but you totally picked the wrong guy to talk about offshore accounts, teams of accountants, and hipocrosy.


RE: I Am Impressed
By bnme on 6/27/2006 11:01:49 AM , Rating: 2
Didn't add this onto the post, so I'll do it here...

You're stereotyping super wealthy people, plain and simple.


RE: I Am Impressed
By masher2 (blog) on 6/26/2006 10:34:57 PM , Rating: 2
> My grandfather left me 20 acres of his land...I had to sell it off to pay the taxes...

Had your grandfather given it away to charity instead, there would have been no estate taxes to pay. I think you'd be even more upset, though, had he done that.



RE: I Am Impressed
By ramj70 on 6/27/2006 7:04:55 AM , Rating: 1
"Had your grandfather given it away to charity instead, there would have been no estate taxes to pay. I think you'd be even more upset, though, had he done that."

If that would have been his choice then I would not have cared, but he wanted it to stay within the family because he cared about his family. Something you obviously do not grasp. Do you even have a job or a family to care of? I doubt it because you dont' have a clue on what its like in the real world. Maybe one day you will find out what its like, until then have fun.


RE: I Am Impressed
By masher2 (blog) on 6/27/2006 9:01:17 AM , Rating: 2
> "Do you even have a job or a family to care of? I doubt it because you dont' have a clue on what its like in the real world. "

Hrm, it seems your your powers of deduction are as weak as your arguments. I've have a family, children, and a quite well-paying career for nearly two decades now. Good going there, Sherlock.


typo
By mosesa5050 on 6/26/2006 12:41:01 PM , Rating: 2
billion only has 2 l's. in the title there are 3.




RE: typo
By raskren on 6/26/2006 12:56:36 PM , Rating: 1
"Gates's" is also incorrect. It should be "Gates'"


RE: typo
By TomZ on 6/26/2006 1:26:42 PM , Rating: 2
Wrong - Gates's and Gates' are both commonly accepted forms (although I personally prefer the latter).


RE: typo
By TomZ on 6/26/2006 1:37:51 PM , Rating: 2
I should have also said, it would be better for the headline to refer instead to the "Gates Foundation" to avoid the awkward possessive form.


RE: typo
By TomZ on 6/26/2006 2:44:59 PM , Rating: 2
quote:
Warren Buffet to Donate Billions to Bill Gates Foundation

But I think this is still wrong, because the foundation is the "Bill and Melinda Gates Foundation," not the "Bill Gates Foundation," (in the title) nor the "Gates Foundation" (as it is referred to in the article). Not a big deal, since people probably know what you mean anyway.


How can anyone criticize this action?
By jskirwin on 6/26/2006 10:39:31 AM , Rating: 2
I'm a cynic, but I'm not sure how anyone can complain about this. Yes he could have given to this charity or that, or he could have given more.

But he didn't have to give anything. He could have left it ALL to his kids, so that they could fritter it away like Paris Hilton. He chose not to.

He's an alright rich guy...





RE: How can anyone criticize this action?
By bnme on 6/26/2006 11:22:50 AM , Rating: 2
His famous quote some 20 years ago:

"a very rich person should leave his kids enough to do anything but not enough to do nothing"

Sort of tells you what type of person Warren Buffett is, and he is a very interesting person (check the biography's that are our about him).

He also has a wicked sense of humor.


By bnme on 6/26/2006 11:23:38 AM , Rating: 2
replace "our" with "out" for the above post... blah...


By JonB on 6/26/2006 2:24:36 PM , Rating: 2
I intend to leave my children enough money to do "something," not enough to do "anything," but certainly not enough to do "nothing."


Doh!
By GreenEnvt on 6/26/2006 10:11:37 AM , Rating: 2
Arg, I knew I shoulda setup the "Lee" Foundation charity sooner, now I missed out :)




Accurate reporting
By unknown666 on 6/26/2006 10:46:28 AM , Rating: 2
"Warren Buffet, considered to be the most respected Wall Street investor of the century, announced that he will be donating $30 billion worth of common stock from his company to the Bill and Melinda Gates Foundation."

This article originally appears in Fortune magazine - there is no way of putting an exact total dollar of Buffet's gift since it is tied to a future, unknowable price of Berkshire. Today's value would put it at $37 billion, but Buffet surmises that Berkshire's price will trend upward and the eventual amount could far exceed that.

"Buffet told reporters that his decisions to give such a significant amount to the Bill and Melinda Gates Foundation is due to Bill Gates's decision recently to step back from his responsibilities at Microsoft to focus more on the foundation."

Not true - from Buffet "The short answer is that I came to realize that there was a terrific foundation that was already scaled-up - that wouldn't have to go through the real grind of getting to a megasize like the Buffett Foundation would - and that could productively use my money now." Moreover, "I realize that the close timing of the two announcements will suggest they're related. But they aren't in the least. The timing is just happenstance. I would be disclosing my plans right now whether or not he had announced his move - and even, in fact, if he were indefinitely keeping on with all of his work at Microsoft."







Per Children?
By TallCoolOne on 6/26/2006 11:18:12 AM , Rating: 2
"Per child" would be the correct grammar. :P




Buffett Gift
By akuttan on 6/28/2006 11:01:37 AM , Rating: 2
The Gift that Changed the World
The Gift that Changed the World: The Importance of Warren Buffets Gift and What It Means to the World of Philanthropy.

Welcome to my blog! Thanks for visiting the site. I decided to start a blog to celebrate and to further contemplate Warren Buffetts’ Generous Gift valued at about 30 billion dollars to the Bill and Melinda Gates Foundation.

Warren Buffett perhaps one of the most watched people outside of the world of Hollywood celebrities and sports stars single handedly changed the world of philanthropy yesterday and possibly the world in the 21st century.

Here are five ways the Omaha banker may just have made the world’s prospects a bit brighter as we move into the next century:

No longer can wealthy people (there are a lot of them) no longer rest comfortably that they will continue to compound their assets so they can die the richest person in the cemetery and or feel good about giving the bulk of their fortune to their children. Rich people have an obligation to give back. Buffett was quite clear on this point when he talked about money as simply a claim on society’s wealth that has to be returned some day. There are now an awful lot of very wealthy people all around the globe that saw the logic of Buffett’s move and will be planning to do the same before they retire or grow too to care. The vast wealth that about 1% of the world’s population could cure poverty, disease and even find alternatives to global warming. That wealth is probably larger than most of the IMF and World Bank assets and the GDPs of most countries.

Buffett by giving to the Gates Foundation endorsed the approach of the Gates Foundation that has the most effective system to identify the key ways science and technology can cure disease, malnutrition and create economic growth. Buffett applied the same sharply focused analysis to Gates record of achievement and his costs as he applied to his other economic investments. This will now be the standard way wealthy people will judge whom to give to.

Buffett’s gift inspired other wealthy people to look at using wealth again to challenge large problems. There was a feeling for a while that such large problems as HIV/AIDS crisis in the developing world was too large for even governments to handle. No longer should wealthy people feel entirely content to devote their fortunes to building another wing to an already rich college and have that building or professorship named after them. Their wealth can also be used to make an immeasurable difference to the lives of children as yet unborn.

Buffett decided to more than double the Gates foundations coffers rather than set up his own foundation or just simply add a distributed share to the foundations of his children. That was an enormous blow struck against the tendency for wealthy people to follow ego needs rather than place their money where it is most likely to do the most good for the most people. It was also as

Allen Sloan notes a shrewd move preventing Buffett relearning the mistakes that Gates Foundation has already made and learned from.

Buffett has decided to give his fortune away in stock over time—that is a smart move for Berkshire Hathaway investors as it gives Buffett and his lean organization an incentive to keep growing the stock price to boost the value of the gift. It is a superb model of how to serve the ends of capitalism and philanthropy and if followed by other market savvy investors, will significantly increase the amount of money that can be given to good causes.

I have admired Warren Buffett for a very long time and realize as founder of the National Education Foundation (NEF) and CyberLearning, (perhaps the most lean and cost effective foundation doing business today) and will be writing more about the significance of this gift in later blogs.




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